S'wak-Putrajaya ink joint declaration for Petros-Petronas collab on gas framework
KUCHING (May 21): All relevant federal and state laws governing gas distribution in Sarawak will coexist and be upheld by all parties involved in such activities, according to a joint declaration signed today by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg in Putrajaya today.
The declaration stated that the parties include Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros).
'Petronas will continue its functions, activities, responsibilities and obligations entrusted to Petronas in Malaysia, under the Petroleum Development Act 1974 (PDA 1974) and its regulations.
'Parties shall endeavour to continue to work together to detail out the framework for the benefit of the nation, taking into consideration the aspirations of Sarawak,' it said.
The joint statement also confirmed the appointment of Petros as the gas aggregator for Sarawak.
This appointment, effective March 1, 2025, is made under Section 7A of the Distribution of Gas Ordinance (DGO) 2016 and must be respected by all parties engaged in the marketing, distribution, and supply of gas to consumers in the state.
'For agreements and arrangements pertaining to the supply and sale of natural gas to consumers in the State of Sarawak, the role of Petros is in alignment with this declaration.
'Any agreements and arrangements between Petronas and/or its subsidiaries with third parties for the purpose of LNG (liquefied natural gas) sales from upstream operations through to LNG exports to foreign parties shall remain unaffected,' it said.
Both leaders also announced that Petronas and Petros will enter into discussions to broaden business cooperation in support of Sarawak's domestic gas requirements.
These discussions will include joint initiatives to implement projects delivering up to 1.2 billion standard cubic feet per day (Bscf/d) of gas, in line with the Sarawak Gas Roadmap.
Additionally, both entities will explore joint ventures in green energy, hydrogen, and power generation projects, in line with Sarawak's broader ambition to establish itself as an energy hub in the Asean region.
Meanwhile at a press conference, Anwar, who is also Finance Minister, said the agreement represented a step forward in national and state development through cooperation between Petronas and Petros.
'This understanding, in principle, had been discussed earlier with the Premier, taking into account the parameters that recognise both the Petroleum Development Act (PDA) 1974 and Sarawak's amended Distribution of Gas Ordinance (DGO) 2016,' he said in a Bernama report.
Anwar said the agreement reflected Sarawak's growing maturity and capability, including the establishment of a state oil company with significant potential.
He added that the understanding ensured Petronas' role would remain intact, while Petros' position in Sarawak would be formally recognised.
'Petronas' role is not diminished. It continues to operate as usual, but now within a framework that also takes into account Sarawak's enhanced responsibilities and Petros' role.
'This understanding allows Petronas to continue its operations, while recognising Petros as a key player in Sarawak. Both will work together to elevate Malaysia's standing in the oil and gas sector,' he said.
Anwar also said the government aimed to position Sarawak as the regional hub for the oil and gas industry in Asean.
'I believe this is a realistic and strategic move that will strengthen the nation's economy and enhance Sarawak's position,' he said.
Also present were Deputy Prime Minister, Datuk Seri Fadillah Yusof; Sarawak Utilities and Telecommunications Minister, Datuk Seri Julaihi Narawi; and Works Minister, Datuk Seri Alexander Nanta Linggi.
Chief Secretary to the Government, Tan Sri Shamsul Azhar Abbas; Attorney-General, Datuk Mohd Dusuki Mokhtar; and Sarawak Attorney-General, Datuk Saferi Ali, were also present. abang johari anwar ibrahim joint declaration oil and gas Petronas Petros
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